Method and system for predicting and indexing probability of financial stress

ABSTRACT

A method, computer system, and computer program product that aggregates data regarding a plurality of factors correlated with income; performs iterative analysis on the data using machine learning to construct a predictive model; populates, using the predictive model, a database with predicted income values for a selected range of housing costs; converts the predicted income values in the database into percentages of observed income values for a selected group of people within the selected range of housing costs over a specified time period to create indices of financial stress; and rank orders the people within the selected group according to their indices of financial stress.

BACKGROUND INFORMATION 1. Field

The present disclosure relates generally to an improved computer system and, in particular, to a method and apparatus for machine learning predictive modeling. Still more particularly, the present disclosure relates to a method and apparatus for predicting probability of financial stress.

2. Background

Some consumers spend all of the money they have, while other consumers have a lifestyle that is very modest compared to their level of income. When credit decisions are made, credit bureau and income verification can assess the level of risk. However, this requires pulling credit bureau data.

Ideally marketing offers should be targeted to consumers with discretionary money to spend, not consumers that have already exhausted most of their financial resources. Credit risk is lower for consumers that have excess capacity created by a lifestyle that is below their income. The problem is how to sift through masses of data related to consumer income, spending, and other lifestyle indicators and properly target marketing offers, including loan products, without pulling credit bureau data.

Therefore, it would be desirable to have a method and system that provides predictive modeling and indices that reflect predicted income based on home value and probability of financial stress without pulling data from credit bureaus.

SUMMARY

An embodiment of the present disclosure provides a computer-implemented method for predictive modeling. The computer system aggregates sample data regarding a plurality of factors correlated with income and performs iterative analysis on the data using machine learning to construct a predictive model. The computer system then populates, using the predictive model, a database with predicted income values for a selected range of housing costs. The computer system converts the predicted income values in the database into percentages of observed income values for a selected group of people within the selected range of housing costs over a specified time period to create indices of financial stress. The computer system then rank orders the people within the selected group according to their indices of financial stress

Another embodiment of the present disclosure provides a machine learning predictive modeling system comprising a computer system and one or more processors running on the computer system. The one or more processors aggregate sample data regarding a plurality of factors correlated with income; perform iterative analysis on the data using machine learning to construct a predictive model; populate, using the predictive model, a database with predicted income values for a selected range of housing costs; convert the predicted income values in the database into percentages of observed income values for a selected group of people within the selected range of housing costs over a specified time period to create indices of financial stress; and rank order the people within the selected group according to their indices of financial stress.

Another embodiment of the present disclosure provides a computer program product for machine learning predictive modeling comprising a persistent computer-readable storage media; first program code, stored on the computer-readable storage media, for aggregating sample data regarding a plurality of factors correlated with income; second program code, stored on the computer-readable storage media, for performing iterative analysis on the data using machine learning to construct a predictive model; third program code, stored on the computer-readable storage media, for populating, using the predictive model, a database with predicted income values for a selected range of housing costs; fourth program code, stored on the computer-readable storage media, for converting the predicted income values in the database into percentages of observed income values for a selected group of people within the selected range of housing costs over a specified time period to create indices of financial stress; and fifth program code, stored on the computer-readable storage media, for rank ordering the people within the selected group according to their indices of financial stress.

The features and functions can be achieved independently in various embodiments of the present disclosure or may be combined in yet other embodiments in which further details can be seen with reference to the following description and drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

The novel features believed characteristic of the illustrative embodiments are set forth in the appended claims. The illustrative embodiments, however, as well as a preferred mode of use, further objectives and features thereof, will best be understood by reference to the following detailed description of an illustrative embodiment of the present disclosure when read in conjunction with the accompanying drawings, wherein:

FIG. 1 is an illustration of a diagram of a data processing environment in accordance with an illustrative embodiment;

FIG. 2 is an illustration of a block diagram of a computer system for predictive modeling in accordance with an illustrative embodiment;

FIG. 3 is an illustration of a database for access by a predictive modeling application in accordance with an illustrative embodiment;

FIG. 4 is an illustration of a flowchart of a process for calculating factors used in predictive modeling in accordance with an illustrative embodiment;

FIG. 5 is an illustration of a flowchart of a process for predictive modeling and indexing in accordance with an illustrative embodiment;

FIG. 6 is an example table for use with a dataset in machine learning in accordance with an illustrative embodiment; and

FIG. 7 is an illustration of a block diagram of a data processing system in accordance with an illustrative embodiment.

DETAILED DESCRIPTION

The illustrative embodiments recognize and take into account one or more different considerations. For example, the illustrative embodiments recognize and take into account that it is difficult to accurately predict the probability of financial stress without pulling credit bureau data.

The illustrative embodiments further recognize and take into account that people with similar incomes tend to purchase properties with similar values or rent properties within a similar price range. Therefore, housing costs as expressed by mortgage/rent payments are strong lifestyle indicators of financial means.

Thus, a method and apparatus that would allow for accurately predicting the probability of financial stress of employees would fill a long-felt need in the field of employee benefits analysis, institutional lending, and marketing.

The flowcharts and block diagrams in the different depicted embodiments illustrate the architecture, functionality, and operation of some possible implementations of apparatuses and methods in an illustrative embodiment. In this regard, each block in the flowcharts or block diagrams may represent at least one of a module, a segment, a function, or a portion of an operation or step. For example, one or more of the blocks may be implemented as program code.

In some alternative implementations of an illustrative embodiment, the function or functions noted in the blocks may occur out of the order noted in the figures. For example, in some cases, two blocks shown in succession may be performed substantially concurrently, or the blocks may sometimes be performed in the reverse order, depending upon the functionality involved. Also, other blocks may be added, in addition to the illustrated blocks, in a flowchart or block diagram.

As used herein, the phrase “at least one of,” when used with a list of items, means different combinations of one or more of the listed items may be used and only one of each item in the list may be needed. In other words, “at least one of” means any combination of items and number of items may be used from the list, but not all of the items in the list are required. The item may be a particular object, thing, or a category.

For example, without limitation, “at least one of item A, item B, or item C” may include item A, item A and item B, or item B. This example also may include item A, item B, and item C or item B and item C. Of course, any combinations of these items may be present. In some illustrative examples, “at least one of” may be, for example, without limitation, two of item A, one of item B, and ten of item C; four of item B and seven of item C; or other suitable combinations.

With reference now to the figures and, in particular, with reference to FIG. 1, an illustration of a diagram of a data processing environment is depicted in accordance with an illustrative embodiment. It should be appreciated that FIG. 1 is only provided as an illustration of one implementation and is not intended to imply any limitation with regard to the environments in which the different embodiments may be implemented. Many modifications to the depicted environments may be made.

The computer-readable program instructions may also be loaded onto a computer, a programmable data processing apparatus, or other device to cause a series of operational steps to be performed on the computer, a programmable apparatus, or other device to produce a computer implemented process, such that the instructions which execute on the computer, the programmable apparatus, or the other device implement the functions and/or acts specified in the flowchart and/or block diagram block or blocks.

FIG. 1 depicts a pictorial representation of a network of data processing systems in which illustrative embodiments may be implemented. Network data processing system 100 is a network of computers in which the illustrative embodiments may be implemented. Network data processing system 100 contains network 102, which is a medium used to provide communications links between various devices and computers connected together within network data processing system 100. Network 102 may include connections, such as wire, wireless communication links, or fiber optic cables.

In the depicted example, server computer 104 and server computer 106 connect to network 102 along with storage unit 108. In addition, client computers include client computer 110, client computer 112, and client computer 114. Client computer 110, client computer 112, and client computer 114 connect to network 102. These connections can be wireless or wired connections depending on the implementation. Client computer 110, client computer 112, and client computer 114 may be, for example, personal computers or network computers. In the depicted example, server computer 104 provides information, such as boot files, operating system images, and applications to client computer 110, client computer 112, and client computer 114. Client computer 110, client computer 112, and client computer 114 are clients to server computer 104 in this example. Network data processing system 100 may include additional server computers, client computers, and other devices not shown.

Program code located in network data processing system 100 may be stored on a computer-recordable storage medium and downloaded to a data processing system or other device for use. For example, the program code may be stored on a computer-recordable storage medium on server computer 104 and downloaded to client computer 110 over network 102 for use on client computer 110.

In the depicted example, network data processing system 100 is the Internet with network 102 representing a worldwide collection of networks and gateways that use the Transmission Control Protocol/Internet Protocol (TCP/IP) suite of protocols to communicate with one another. At the heart of the Internet is a backbone of high-speed data communication lines between major nodes or host computers consisting of thousands of commercial, governmental, educational, and other computer systems that route data and messages. Of course, network data processing system 100 also may be implemented as a number of different types of networks, such as, for example, an intranet, a local area network (LAN), or a wide area network (WAN). FIG. 1 is intended as an example, and not as an architectural limitation for the different illustrative embodiments.

The illustration of network data processing system 100 is not meant to limit the manner in which other illustrative embodiments can be implemented. For example, other client computers may be used in addition to or in place of client computer 110, client computer 112, and client computer 114 as depicted in FIG. 1. For example, client computer 110, client computer 112, and client computer 114 may include a tablet computer, a laptop computer, a bus with a vehicle computer, and other suitable types of clients.

In the illustrative examples, the hardware may take the form of a circuit system, an integrated circuit, an application-specific integrated circuit (ASIC), a programmable logic device, or some other suitable type of hardware configured to perform a number of operations. With a programmable logic device, the device may be configured to perform the number of operations. The device may be reconfigured at a later time or may be permanently configured to perform the number of operations. Programmable logic devices include, for example, a programmable logic array, programmable array logic, a field programmable logic array, a field programmable gate array, and other suitable hardware devices. Additionally, the processes may be implemented in organic components integrated with inorganic components and may be comprised entirely of organic components, excluding a human being. For example, the processes may be implemented as circuits in organic semiconductors.

Turning to FIG. 2, a block diagram of a computer system for predictive modeling is depicted in accordance with an illustrative embodiment. Computer system 200 is connected to internal databases 260, external databases 270 and devices 280. Internal databases 260 comprise payroll 262, tax forms 264, residence 266, and employer 268 information. External databases 270 comprise home valuations 272, mortgage rates 274, and employer industry/sector 276. Devices 280 comprise non-mobile devices 282 and mobile devices 284.

Computer system 200 comprises information processing unit 216, machine intelligence 218, and indexing program 230. Machine intelligence 218 comprises machine learning 220 and predictive algorithms 222.

Machine intelligence 218 can be implemented using one or more systems such as an artificial intelligence system, a neural network, a Bayesian network, an expert system, a fuzzy logic system, a genetic algorithm, or other suitable types of systems. Machine learning 220 and predictive algorithms 222 may make computer system 200 a special purpose computer for dynamic predictive modelling of the probability of financial stress.

In an embodiment, processing unit 216 comprises one or more conventional general purpose central processing units (CPUs). In an alternate embodiment, processing unit 216 comprises one or more graphical processing units (GPUs). Though originally designed to accelerate the creation of images with millions of pixels whose frames need to be continually recalculated to display output in less than a second, GPUs are particularly well suited to machine learning. Their specialized parallel processing architecture allows them to perform many more floating point operations per second then a CPU, on the order of 1000× more. GPUs can be clustered together to run neural networks comprising hundreds of millions of connection nodes.

Indexing program 230 comprises information gathering 252, selecting 232, modeling 234, comparing 236, indexing 238, ranking 240, and displaying 242. Information gathering 252 comprises internal 254 and external 256. Internal 254 is configured to gather data from internal databases 260. External 256 is configured to gather data from external databases 270.

Thus, processing unit 216, machine intelligence 218, and indexing program 230 transform a computer system into a special purpose computer system as compared to currently available general computer systems that do not have a means to perform machine learning predictive modeling such as computer system 200 of FIG. 2. Currently used general computer systems do not have a means to accurately predict and compare the probability of financial stress without pulling credit bureau data.

Turning to FIG. 3, a block diagram of a database is depicted in accordance with an illustrative embodiment. Database 300 comprises connections 310, financial data 320, housing data 330, and employment data 340. Connections 310 comprise internet 312, wireless 314, and others 316. Connections 310 may provide connectivity with internal databases 260, external databases 270, and devices 280 shown in FIG. 2. Internet 312 and wireless 314 as well as others 316 in connections 310 in FIG. 3 may connect with internal databases 260, external databases 270, and devices 280 shown in FIG. 2, through a network such as network 102 in FIG. 1. Others 316 may comprise any additional available means of connection other than internet 312 and wireless 314 such as a hard wired connection or a landline.

Financial data 320 contains employee compensation information. Information regarding the employee salary is maintained in salary 322. Information about the number and amount of deductions is maintained in payroll deductions 324. Information regarding employee tax filing status is maintained in tax forms 326.

Housing data 330 contains information about housing values and costs. Information about housing costs is maintained in housing costs 332. Information about the local housing market is maintained in home value 334. Information on mortgage rates is maintained in mortgage rates 336.

Employment data 340 comprises information about an employee's employment. Information regarding the industry/sector in which an employee is employed is maintained in industry/sector 342. A sector identifies a high-level group of related businesses. It can be thought of as a generic type of business. For example, the North American Industry Classification System (NAICS) uses a six digit code to identify an industry. The first two digits of that code identify the sector in which the industry belongs. Information regarding the employer is maintained in employer 344.

Turning to FIG. 4, an illustration of a flowchart for calculating factors used in predictive modeling is depicted in accordance with an illustrative embodiment. This process can be implemented in software, hardware, or a combination of the two. When software is used, the software comprises program code that can be loaded from a storage device and run by a processor unit in a computer system such as computer system 200 in FIG. 2. Computer system 200 may reside in a network data processing system such as network data processing system 100 in FIG. 1. For example, computer system 200 may reside on one or more of server computer 104, server computer 106, client computer 110, client computer 112, and client computer 114 connected by network 102 in FIG. 1. Moreover, the process can be implemented by data processing system 700 in FIG. 7 and a processing unit such as processor unit 704 in FIG. 7.

It should be emphasized that the specific sequence of steps in the illustrative embodiment shown in FIG. 4 is chosen merely for convenience. The factors shown in FIG. 4 can be calculated independently in any particular order or may be calculated in parallel by separate processors or processor threads, depending on the specific architecture of the computer system used. In the illustrative embodiment the factors are calculated using the information maintained in database 300 shown in FIG. 3.

Process 400 begins by determining employee salary (step 402). Next the process calculates the total amount of payroll deductions from the base paycheck (step 404). The deductions can include health insurance, dental and vision insurance (both for the employee and/or family members), health savings account, retirement savings, stock purchase plans, dependents and approximate age, and garnishment. Such payroll deductions provide a clearer picture of the actual available cash flow to meet immediate and near term expenses. Tax filing status on employee tax forms are used to determine if the employee is the only wage earner in the household (step 406), which again goes to the issue of available cash flow within the household.

Housing cost trends are determined for the geographic area in question over a predetermined time period (step 408). Since real estate markets are highly local, the smaller the geographic area chosen (i.e. zip/postal code), the more accurate the predictive model. Housing costs can encompass home values and rental rates, both largely representative of living expenses and overall lifestyle. Home value can be both a measure of wealth as well as a measure of living costs. Generally, as home values increase, the income of the owners increases as well. However, some people buy the most expensive house lenders will allow, pushing the limits of their available cash flow. Other people buy houses that cost significantly less than lenders would approve.

Furthermore, the wealth effect of home value can reverse in an economic downturn marked by falling home values. The timing of when a home owner buys into the local market is an important factor. Therefore, calculating trends over specified time periods produces more accurate predictive models than looking at a snapshot of housing costs and home values at a given point in time.

The process also calculates trends in mortgage rates (step 410). Mortgage rates indirectly correlate to local real estate markets by influencing the amount of money purchasers can borrow and use to bid for houses. Mortgage rates link trends in local real estate markets with national and even international capital markets.

Next process 400 calculates employment trends over a specified time period for the industry/sector in which the employee is employed (step 412). This measure speaks to the future employment prospects of the employee. For example, if the employee currently has a high salary, but if the industry/sector in which the employee works is shrinking or moving toward automation, the current salary might not be an accurate predictive value of the employee's future income and lifestyle.

Similarly, the process also calculates hiring trends for the employee's employer over a specified time period (step 414). This also points to the future income and lifestyle of an employee beyond a snapshot of current salary. Is the employer hiring, downsizing, and/or automating? Furthermore, a specific firm may not track closely with the overall industry/sector. For example, large firms might fare poorly in an economic downturn due to larger overhead expenses and existing legacy infrastructure. On the other hand, larger firms might have more financial reserves to weather a downturn better than smaller firms.

Finally, the process calculates employment trends within a predefined geographic region (e.g., zip code, city, state, etc.) over a specified period of time (step 416), which relates to trends in housing costs and home values.

The method of the present disclosure utilizes machine learning and predictive algorithms such as those provided by machine intelligence 218 in FIG. 2. Machine learning is a branch of artificial intelligence (AI) that enables computers to detect patterns and improve performance without direct programming commands. Rather than relying on direct input commands to complete a task, machine learning relies on input data. The data is fed into the machine, a predictive algorithm is selected, parameters for the data are configured, and the machine is instructed to find patterns in the input data through trial and error. The data model formed from analyzing the data is then used to predict future values.

Turning to FIG. 5, an illustration of a flowchart of a process for predictive modeling and indexing is depicted in accordance with an illustrative embodiment. Process 500 can be implemented in software, hardware, or a combination of the two. When software is used, the software comprises program code that can be loaded from a storage device and run by a processor unit in a computer system such as computer system 200 in FIG. 2. Computer system 200 may reside in a network data processing system such as network data processing system 100 in FIG. 1. For example, computer system 200 may reside on one or more of server computer 104, server computer 106, client computer 110, client computer 112, and client computer 114 connected by network 102 in FIG. 1. Moreover, the process can be implemented by data processing system 700 in FIG. 7 and a processing unit such as processor unit 704 in FIG. 7.

Process 500 begins by aggregating the employment and housing data associated with the factors determined in the process flow in FIG. 4 (step 502). Referring to FIG. 6, an example table for use with a dataset in machine learning is depicted in accordance with an illustrative embodiment. The dataset used to form predictions is defined and labeled in a table such as table 600. Each column is known as a vector, and the data within each column is a feature, also known as a variable, dimension, or attribute. Each row represents a single observation of a given feature and is referred to as a case or value. The y values represent the output and are typically expressed in the final column as shown. For ease of illustration the example shown in FIG. 6 is a simple 2-D table, but it should be noted that multiples vectors (forming matrices) are typically used to represent large datasets. Referring back to FIG. 4, each category of data determined in the process flow could be represented by a separate vector (column) in a tabular dataset depending on how the data is aggregated.

After the dataset is aggregated, process 500 scrubs the dataset (step 504). Very large datasets, sometimes referred to as Big Data, often contain noise and complicated data structures. Bordering on the order of petabytes, such datasets comprise a variety, volume, and velocity (rate of change) that defies conventional processing and is impossible for a human to process without advanced machine assistance. Scrubbing refers to the process of refining the dataset before using it to build a predictive model and includes modifying and/or removing incomplete data or data with little predictive value. It can also entail converting text based data into numerical values (one-hot encoding) or convert numerical values into a category.

After the dataset has been scrubbed, process 500 divides the data into training data and test data to be used for building and testing the predictive model (step 506). To produce optimal results, the same data that is used to test the model should not be the same data used for training. The data is divided by rows, with 70-80% used for training and 20-30% used for testing. Randomizing the selection of the rows avoids bias in the model.

Process 500 then performs iterative analysis on the training date by applying predictive algorithms to construct a predictive model (step 508). There are three main categories of machine learning: supervised, unsupervised, and reinforcement. Supervised machine learning comprises providing the machine with test data and the correct output value of the data. Referring back to table 600 in FIG. 6, during supervised learning the values for the y column (output) are provided along with the training data (labeled dataset) for the model building process in step 508. The algorithm, through trial and error, deciphers the patterns that exist between the input training data and the known output values to create a model that can reproduce the same underlying rules with new data. Examples of supervised learning algorithms include regression analysis, decisions trees, k-nearest neighbors, neural networks, and support vector machines.

If unsupervised learning is used, not all of the variables and data patterns are labeled, forcing the machine to discover hidden patterns and create labels on its own through the use of unsupervised learning algorithms. Unsupervised learning has the advantage of discovering patterns in the data no one previously knew existed. Examples of algorithms used in unsupervised machine learning include k-means clustering (k-NN), association analysis, and descending clustering.

After the model is constructed, the test data is fed into model to test its accuracy (step 510). In an embodiment the model is tested using mean absolute error, which examines each prediction in the model and provides an average error score for each prediction. If the error rate between the training and test dataset is below a predetermined threshold, the model has learned the dataset's pattern and passed the test.

If the model fails the test the hyperparameters of the model are changed and/or the training and test data are re-randomized, and the iterative analysis of the training data is repeated (step 512). Hyperparameters are the settings of the algorithm that control how fast the model learns patterns and which patterns to identify and analyze. Once a model has passed the test stage it is ready for application.

Whereas supervised and unsupervised learning reach an endpoint after a predictive model is constructed and passes the test in step 510, reinforcement learning continuously improves its model using feedback from application to new empirical data. Algorithms such as Q-learning are used to train the predictive model through continuous learning using measurable performance criteria (discussed in more detail below).

After the model is constructed and tested for accuracy, process 500 uses the model to calculate predicted income based on home value, geographic area, and industry/sector of employment (step 514). The predicted income reflects the expected financial means of someone with a given mortgage/rent payment.

The predicted values are then converted into a percentage of observed income to form an index (step 516). The index is calculated by dividing the predicted value by the observed value and then multiplying by 100. A percentage greater than 100% identifies employees that have more income than most people with similar mortgage/rent payments. Percentages significantly higher than 100% identify employees that have much more income than most people with similar housing costs. Such employees are least likely to have financial stress.

A percentage less than 100% identifies employees that have less income than most people with similar mortgage/rent payments. Percentages significantly lower than 100% identify employees with incomes much less than most people with similar housing costs. These employees might have substantial financial stress.

After the indices have been calculated, process 500 rank orders individuals by index (step 518). Rank ordering the indices facilitates identification of individuals at extreme ends of the income/home value calculation. Marketing efforts can use this information to help target messages to the correct people. However, application of the indices is not a simple matter of simply identifying individuals with more discretionary cash flow. Spending patterns are not necessarily linear. Consumers with higher income than predicted for their home values/mortgage payments should have sufficient financial means for expensive purchases. However, those individuals with an index above a specified threshold might be excluded from certain marketing campaigns due to their conservative spending habits; they have the discretionary income but rarely spend it. Conversely, individuals with much lower income than expected from their mortgage/rent payments might be living far beyond their means and should be excluded from marketing efforts because they have already spent or allocated most of their discretionary income and may not be able to purchase additional items.

Employers can also use this information regarding recruitment and management policies. Businesses can use this information to evaluate the stability of their employees as well as compare their employees to employees for a peer group of businesses. Employee stability is a business risk and it is difficult to measure without an index. For example, employees that spend significantly less than their income might be motivated by factors at work other than salary. On the other hand, employees that are overextended and under financial stress might be motivated solely by pay, making them very aggressive and competitive and thereby requiring special handling. The indices can also be used to identify geographic regions where consumers can withstand an economic downtown better than other regions. Such information can be used to identify how stable a local economy is.

Lending institutions can use this information as part of enhanced loan underwriting criteria. The amount of financial stress is expected to affect loan performance. The index of the present disclosure provides information that is currently not easily obtainable. The index is an efficient method to estimate probable consumer financial stress and obviates the need to pull credit bureau data.

If reinforcement learning is used with the predictive modelling, the index rankings are compared to the actual observed financial stress of employees over a subsequent time period (e.g., month, quarter, year, etc.) (step 520). The actual financial stress experienced by the employees might not conform as expected to their relative index ranking. Furthermore, the sample data used to construct the predictive model might become outdated. Updated employment and housing data is collected after the subsequent time period and fed back into the machine learning to update and modify the predictive model (step 522).

The illustrative embodiments thus produce the technical effect of constructing accurate, complex predictive models from large datasets and do so in a timely manner in the face of rapidly changing empirical data.

Turning now to FIG. 7, an illustration of a block diagram of a data processing system is depicted in accordance with an illustrative embodiment. Data processing system 700 may be used to implement one or more computers and client computer system 112 in FIG. 1. In this illustrative example, data processing system 700 includes communications framework 702, which provides communications between processor unit 704, memory 706, persistent storage 708, communications unit 710, input/output unit 712, and display 714. In this example, communications framework 702 may take the form of a bus system.

Processor unit 704 serves to execute instructions for software that may be loaded into memory 706. Processor unit 704 may be a number of processors, a multi-processor core, or some other type of processor, depending on the particular implementation. In an embodiment, processor unit 704 comprises one or more conventional general purpose central processing units (CPUs). In an alternate embodiment, processor unit 704 comprises one or more graphical processing units (CPUs).

Memory 706 and persistent storage 708 are examples of storage devices 716. A storage device is any piece of hardware that is capable of storing information, such as, for example, without limitation, at least one of data, program code in functional form, or other suitable information either on a temporary basis, a permanent basis, or both on a temporary basis and a permanent basis. Storage devices 716 may also be referred to as computer-readable storage devices in these illustrative examples. Memory 716, in these examples, may be, for example, a random access memory or any other suitable volatile or non-volatile storage device. Persistent storage 708 may take various forms, depending on the particular implementation.

For example, persistent storage 708 may contain one or more components or devices. For example, persistent storage 708 may be a hard drive, a flash memory, a rewritable optical disk, a rewritable magnetic tape, or some combination of the above. The media used by persistent storage 708 also may be removable. For example, a removable hard drive may be used for persistent storage 708. Communications unit 710, in these illustrative examples, provides for communications with other data processing systems or devices. In these illustrative examples, communications unit 710 is a network interface card.

Input/output unit 712 allows for input and output of data with other devices that may be connected to data processing system 700. For example, input/output unit 712 may provide a connection for user input through at least one of a keyboard, a mouse, or some other suitable input device. Further, input/output unit 712 may send output to a printer. Display 714 provides a mechanism to display information to a user.

Instructions for at least one of the operating system, applications, or programs may be located in storage devices 716, which are in communication with processor unit 704 through communications framework 702. The processes of the different embodiments may be performed by processor unit 704 using computer-implemented instructions, which may be located in a memory, such as memory 706.

These instructions are referred to as program code, computer-usable program code, or computer-readable program code that may be read and executed by a processor in processor unit 704. The program code in the different embodiments may be embodied on different physical or computer-readable storage media, such as memory 706 or persistent storage 708.

Program code 718 is located in a functional form on computer-readable media 720 that is selectively removable and may be loaded onto or transferred to data processing system 600 for execution by processor unit 704. Program code 718 and computer-readable media 720 form computer program product 722 in these illustrative examples. In one example, computer-readable media 720 may be computer-readable storage media 724 or computer-readable signal media 726.

In these illustrative examples, computer-readable storage media 724 is a physical or tangible storage device used to store program code 718 rather than a medium that propagates or transmits program code 718. Alternatively, program code 718 may be transferred to data processing system 700 using computer-readable signal media 726.

Computer-readable signal media 726 may be, for example, a propagated data signal containing program code 718. For example, computer-readable signal media 726 may be at least one of an electromagnetic signal, an optical signal, or any other suitable type of signal. These signals may be transmitted over at least one of communications links, such as wireless communications links, optical fiber cable, coaxial cable, a wire, or any other suitable type of communications link.

The different components illustrated for data processing system 700 are not meant to provide architectural limitations to the manner in which different embodiments may be implemented. The different illustrative embodiments may be implemented in a data processing system including components in addition to or in place of those illustrated for data processing system 700. Other components shown in FIG. 7 can be varied from the illustrative examples shown. The different embodiments may be implemented using any hardware device or system capable of running program code 718.

The flowcharts and block diagrams in the different depicted embodiments illustrate the architecture, functionality, and operation of some possible implementations of apparatuses and methods in an illustrative embodiment. In this regard, each block in the flowcharts or block diagrams may represent at least one of a module, a segment, a function, or a portion of an operation or step. For example, one or more of the blocks may be implemented as program code.

In some alternative implementations of an illustrative embodiment, the function or functions noted in the blocks may occur out of the order noted in the figures. For example, in some cases, two blocks shown in succession may be performed substantially concurrently, or the blocks may sometimes be performed in the reverse order, depending upon the functionality involved. Also, other blocks may be added in addition to the illustrated blocks in a flowchart or block diagram.

The description of the different illustrative embodiments has been presented for purposes of illustration and description and is not intended to be exhaustive or limited to the embodiments in the form disclosed. The different illustrative examples describe components that perform actions or operations. In an illustrative embodiment, a component may be configured to perform the action or operation described. For example, the component may have a configuration or design for a structure that provides the component an ability to perform the action or operation that is described in the illustrative examples as being performed by the component. Many modifications and variations will be apparent to those of ordinary skill in the art. Further, different illustrative embodiments may provide different features as compared to other desirable embodiments. The embodiment or embodiments selected are chosen and described in order to best explain the principles of the embodiments, the practical application, and to enable others of ordinary skill in the art to understand the disclosure for various embodiments with various modifications as are suited to the particular use contemplated. 

What is claimed is:
 1. A computer-implemented method for targeting marketing messages to one or more individuals, the method comprising a processor unit of a machine learning predictive modeling system: aggregating, by the processor unit, sample data regarding a plurality of factors correlated with income; at least one of: modifying, by the processor unit, incomplete data, removing, by the processor unit, the incomplete data, converting, by the processor unit, text-based data into numerical values, and converting, by the processor unit, the numerical values into a category; performing, by the processor unit, iterative analysis based on a machine learning with a training data split from the sample data to construct a predictive model, wherein the machine learning comprises at least one of: supervised learning, unsupervised learning, and reinforcement learning; testing an accuracy of the predictive model with a test data split from the sample data; in response to an error rate above a predetermined threshold between the training and test data that is determined based on the testing, changing, by the processor unit, one or more hyper-parameters of the predictive model, randomizing, by the processor unit, the training data and the test data, repeating, by the processor unit, the iterative analysis based on the machine learning with the training data to construct the predictive model, and re-testing, by the processor unit, the accuracy of the predictive model; determining, by the processor unit, using the predictive model for each individual of a plurality of individuals, a predicted income for each individual having given housing costs based on a home value, a defined geographic area, and at least one of an industry or a sector of employment for each individual; converting, by the processor unit, the predicted income for each individual into an index of financial stress for each individual based on the predicted income for each individual relative to an observed income for other individuals with similar housing costs; rank ordering, by the processor unit, the plurality of individuals according to the index of financial stress for each individual; comparing, by the processor unit, the rank ordering within the plurality of individuals to observed financial stress within the plurality of individuals over a specified time period; aggregating, by the processor unit, updated sample data comprising housing cost trends in a predetermined geographic area over the specified time period; updating, by the processor unit, the predictive model using the machine learning incorporating the updated sample data for the specified time period; updating, by the processor unit, the rank ordering of the plurality of individuals using the updating of the predictive model and re-converting the predicted income for each individual into the index of financial stress for each individual; and targeting, by the processor unit, messages to selected individuals in the plurality of individuals using the rank ordering of the plurality of individuals.
 2. The method according to claim 1, wherein the sample data used to construct the predictive model further comprises data from categories of data comprising salary; payroll deductions; household tax filing status; mortgage rates; first employment trends within a specified industry or sector; second employment trends within the predetermined geographic area; and hiring trends for specific employers.
 3. The method according to claim 1, wherein the housing costs comprise mortgage payments.
 4. The method according to claim 1, wherein the housing costs comprise rent payments.
 5. The method according to claim 1, wherein the supervised learning comprises providing the machine with test data and a correct output value.
 6. The method according to claim 1, wherein the unsupervised learning comprises unlabeled variables and data patterns, and the machine discovering hidden patterns and creating labels via using unsupervised learning algorithms.
 7. The method according to claim 1, wherein the reinforcement learning continuously improves the predictive model using feedback.
 8. A machine learning predictive modeling system that comprises: a storage device configured to store program instructions; and a processor unit operably connected to the storage device and configured to execute the program instructions and to cause the machine learning predictive modeling system to: aggregate sample data regarding a plurality of factors correlated with income; at least one of: modify incomplete sample data, remove the incomplete sample data, convert text-based data into numerical values, and convert the numerical values into a category; perform iterative analysis based on a machine learning with a training data split from the sample data that constructs a predictive model, wherein the machine learning predictive modeling system comprises at least one of: supervised learning, unsupervised learning, and reinforcement learning; test an accuracy of the predictive model with a test data split from the sample data; in response to an error rate above a predetermined threshold between the training and test data that is determined based on the testing, change one or more hyper-parameters of the predictive model, randomize the training data and the test data, repeat the iterative analysis based on the machine learning with the training data to construct the predictive model, and re-test the accuracy of the predictive model; determine, based upon the predictive model for each individual of a plurality of individuals, a predicted income for each individual having given housing costs based on a home value, a defined geographic area, and at least one of an industry or a sector of employment for each individual; convert the predicted income for each individual into an index of financial stress for each individual based on the predicted income for each individual relative to an observed income for other individuals with similar housing costs; rank order the plurality of individuals based on the index of financial stress for each individual; compare the rank order within the plurality of individuals to observed financial stress within the plurality of individuals over a specified time period; aggregate-updated sample data over the specified time period that comprises housing cost trends in a predetermined geographic area; update the predictive model based upon an incorporation of the updated sample data for the specified time period; update the rank order of the plurality of individuals based on the update of the predictive model used to re-convert the predicted income for each individual into the index of financial stress for each individual; and target messages to selected individuals in the plurality of individuals based on the rank order of the plurality of individuals.
 9. The machine learning predictive modeling system according to claim 8, further comprising aggregated graphical processor units (GPU).
 10. The machine learning predictive modeling system according to claim 8, wherein the supervised learning comprises receipt by the machine learning predictive modeling system of test data and a correct output value.
 11. The machine learning predictive modeling system according to claim 8, wherein the unsupervised learning comprises unlabeled variables and data patterns, and a discovery by the machine learning predictive modeling system of hidden patterns and a creation of labels based upon unsupervised learning algorithms.
 12. The machine learning predictive modeling system according to claim 8, wherein the reinforcement learning comprises a continuous improvement to the predictive model based upon feedback.
 13. A computer program product configured to execute machine learning predictive modeling, such that the computer program product comprises: a persistent computer-readable storage media that comprises program instructions stored thereon and configured to: aggregate sample data regarding a plurality of factors correlated with income; at least one of: a modification of incomplete sample data, a removal of the incomplete sample data, a conversion of a text-based data into numerical values, and a conversion of the numerical values into a category; perform an iterative analysis based on a machine learning with a training data split from the sample data that constructs a predictive model, such that the machine learning comprises at least one of: supervised learning, unsupervised learning, and reinforcement learning; test an accuracy of the predictive model with the test data; in response to an error rate above a predetermined threshold between the training and test data that is determined based on the testing, change one or more hyper-parameters of the predictive model, randomize the training data and the test data, repeat the iterative analysis based on the machine learning with the training data to construct the predictive model, and re-test the accuracy of the predictive model; determine, based upon the predictive model for each individual of a plurality of individuals, a predicted income for each individual having given housing costs based on a home value, a defined geographic area, and at least one of an industry or a sector of employment for each individual; convert the predicted income for each individual into an index of financial stress for each individual based on the predicted income for each individual relative to an observed income for other individuals with similar housing costs; rank order the plurality of individuals based upon the index of financial stress for each individual; compare the rank order within the plurality of individuals to observed financial stress within the plurality of individuals over a specified time period; aggregate updated sample data over the specified time period that comprises housing cost trends in a predetermined geographic area; update the predictive model based upon machine learning that incorporates the updated sample data over the specified time period; update the rank order of the plurality of individuals based on the update of the predictive model used to re-convert the predicted income for each individual into the index of financial stress for each individual; and target messages to selected individuals in the plurality of individuals based upon the rank order of the plurality of individuals.
 14. The computer program product according to claim 13, wherein the sample data used to construct the predictive model comprises data from categories of data that comprises: salary; payroll deductions; household tax filing status; mortgage rates; first employment trends within a specified industry/sector; second employment trends within the predetermined geographic area; and hiring trends for specific employers.
 15. The computer program product according to claim 13, wherein the housing costs comprise mortgage payments.
 16. The computer program product according to claim 13, wherein the housing costs comprise rent payments.
 17. The computer program product according to claim 13, wherein the supervised learning comprises receipt by the machine learning predictive modeling system of test data and a correct output value.
 18. The computer program product according to claim 13, wherein the unsupervised learning comprises unlabeled variables and data patterns, and a discovery by the machine learning predictive modeling system of hidden patterns and a creation of labels based upon unsupervised learning algorithms.
 19. The computer program product according to claim 13, wherein the reinforcement learning comprises a continuous improvement to the predictive model based upon feedback.
 20. The method according to claim 1, wherein the home value resides in an external database.
 21. The machine learning predictive modeling system claim 8, wherein the home value resides in an external database.
 22. The computer program product of claim 13, wherein the home value resides in an external database. 